4 minute read
A BIG Idea Leads to an Innovative Approach in Financial Education
By Beth Lawing
High schools across the country offer stock market simulation games to give students insight into the world of financial investment. At Country Day, students have taken it up a notch with the Buccaneers Investment Group (BIG), which uses real money to make bona fide financial transactions in the stock market.
The idea began in 2014 with co-founders Owen Engel ’17 and John Whitley ’17. “As a sophomore, I realized that I wanted to learn even more about money after taking Mr. Brad Touma’s economics class,” recalls John. After learning that Upper School clubs can’t directly solicit funding, John and Owen approached members of the school’s Advancement and Finance Offices for guidance. It was agreed that assets appropriated through the establishment of a Country Day endowed fund could be a possible avenue. However, first Owen and John had to convince the Board of Trustees.
“Owen and I worked hard to get approval for BIG,” remembers John. “At first, the Board was a little skeptical about high school kids running an investment club with actual money on the line. When they saw how prepared we were in thinking through how we would start BIG and perpetuate it, they realized that we had done our homework.”
“Fundraising was challenging at first because we did not want to nickeland-dime everyone’s parents,” says John. “That’s about the time our ‘Angel Investor’ appeared.” H
Alfred Brand, who sits on the Finance Committee of the Board of Trustees, made a substantial gift to the school to help establish the BIG General Endowment Fund. “I wanted to help financially if the students really wanted to get serious about it,” remembers Alfred, an entrepreneur who is a parent to four Country Day graduates and five grandchildren. “It’s important to teach kids how to invest. Country Day is a financially sound institution because the school has received excellent advice in our financial city.”
Additionally, four other community members contributed to the BIG General Endowment, allowing the club to get off the ground with $26,500 to invest. At press time, BIG’s portfolio was valued at $37,611, an increase of 42%. All 15 of BIG’s current stock picks have realized gains this year, and the club members appreciate that the timing of their investments has coincided with overall stock market gains in the past three years. Profits are reinvested into BIG’s portfolio to help finance future transactions.
LEARNING AND LEADING THROUGH MENTORSHIP
Upper School math teacher Bryan Stanton is BIG’s faculty advisor. “With online simulation games, students will take risks that they wouldn’t necessarily take in real life,” he says.
Hunter Engel ’20 is this year’s president of the 40-member club. He and vice presidents McAuley Millen ’20 and Russell Tabor ’21 organize BIG members into six financial sectors to help maintain a diversified portfolio. Each sector is mentored by upperclassmen who help the freshmen and sophomores learn the jargon of getting down to business. At their weekly meetings, each sector presents its financial insights about buying and selling the stocks currently in its portfolio. In addition, BIG executives provide updates twice a year to David Mancos, Country Day’s chief financial officer, and to the Board.
When it comes to being prepared to make informed decisions, Hunter asks club members to research a growth stock, a value stock, and a stock that they are personally interested in.
“Mr. Stanton and I both stress that we want them to think with their gut and to notice what is going on around them in the world,” explains Hunter. “I also ask them to use reputable sources, such as Google Finance, Value Line, and Bloomberg.”
The topics discussed at BIG meetings are both insightful and engaging. “Generally, I try to take a hands-off approach to leading the group, as does Mr. Brand,” attests Mr. Stanton. “For example, BIG members own stock in Boeing, a corporation which has been in the news a lot this year. Last spring, the students were the ones following the story and debating whether to sell the stock. After much deliberation and critical thinking, BIG members decided to hold on to it.”
BIG is currently 90 percent male and club members want to change the equation. “Female club members have been crucial to portfolio gains,” according to Hunter. “For example, Linnea Aus ’18 recommended investing in Lululemon because she had heard a men’s clothing line was about to be introduced. This stock, which has more than doubled in our portfolio, would not have been on our radar if we hadn’t had female members.”
Another BIG goal is to have more parent and community speakers join meetings to talk about their involvement in the financial world.
THE REAL ROI
“Country Day’s education is at its finest when students have a passion to learn,” says Mr. Stanton. “I love seeing how learning about the stock market comes alive for BIG members.”
BIG co-founder John Whitley, who is currently a real estate/finance major at the University of South Carolina, adds,
THE DIVERSIFIED PORTFOLIO OF THE BUCCANEERS INVESTMENT GROUP:
Health Stocks: Cigna, Progressive, Johnson & Johnson
Consumer Stocks: Apple, Lululemon, Proctor & Gamble
Industrial Stocks: Boeing, Lockheed Martin, Honeywell
Financial Stocks: Broadridge Financial Solutions, Bank of America
Energy Stocks: Duke Energy, NRG Energy
Technology/Telecommunications Stocks: Verizon, Cognizant Technology Solutions
